Los Angeles daily herald., 1887-07-29
DAILY HERALD.
SPECULATIVE TIPS.
why stock Jobbing Bank Em-
ploves ARE Closely watched.

pleyes are Closely Watched.
One unfortunate bank clerk received
an unwelcome notice last week in the
way Of discharge from his position.
There was nothing wrong in his ac-
counts and he had acquitted himself
with fidelity and ability, but it was his
i'll fortune to have for a friend dashing
board of trade speculator, and he COM
mitted the indiscretion of accepting an
invitation to dinner at the club with
his amigo. The fact was reported to
the president of the bank, and
his removal promptly followed.
When the latter was expostulated
with for his seeming injustice, he re-
piled that while the clerk had done
rothing to warrant the suspicion of
wrong, the fact that he was friend
of the broker was sufficient cause
for his discharge. The acquaint-
ance and the knowledge that
his friends prosperity was due
to speculative flights was a
constant temptation to indulge in like
practices, first with his own money,
and then, in moment of weakness
or desperation, with that OF the bank.
No bank employe could afford to sub
ject himself to such influences, and it
was only by adopting these extraor-
dinary precautions that the banks
preserved themselves against loss. The
argument was unanswerable, and the
clerk is now looking for another situa-
tion. In this connection it may be
stated that the private habits, the
amusements, and all the trifiing de-
tails of the lives of the employees of
banks are as well known to the bank
presidents as to themselves. So long
as the expenditures entailed by their
habits can be accounted for within the
limits of their salaries, all is well, but
let them go beyond that limit and a
rigid inspection OF cash and books fol-
lows, and vacancy at once occurs in
the force of that particular institution.
The bad effects which may attach
even when all the circumstances point
the other way is illustrated in case
which occurred in Chicago some years
ago. 1t was in the Treasurer's office
Of a big corporation handling millions
of money i'm the course of the year.
Two men possessed the combination
of the safe, the Treasurer and his
assistant. The former, returning
after luncheon, made the discoy-
cry that a package containing $4,000
was missing. The fact was at once
communicated to the Vice President,
y well known detective firm called in,
and an investigation begun. OF
course, suspicion attached to the
assistant, he being the only one in the
office while his superior was absent
and he knew the combination. He
was placed under surveillance, but
there was no proof adduced to show
that he had taken the money.
His habits were good, he
never speculated, lived within
his salary, and beyond the fact
that he had the opportunity nothing
was proved. On the contrary, the
Treasurer was a speculator, constantly
indulging in flyers in the wheat and
stock market, which he was able to
do from his private means, as they
were considerable. While the COM
pany never questioned his honesty,
still it made the fituation an awkward
one; 50 awkward, in fact, that
rather than have these points
brought out under the fire OF
cross-examination, the case was aban-
doned, the detectives hauled off and
no further efforts made to recover the
money. The reason is plain. The
company could better submit to the
loss than have its credit injured and
the stockholders made suspicious by
the speculative habits of the Treasurer
becoming a matter of public notoriety.
There is more or less rot written
and served up to the public regarding
the habit of high executive officials to
trade upon their inside knowledge,
ai.d fancy sketches are published
graphically describing the array Of!
telegraph boys attending upon the
railway meetings and scurrying away
to the telegraph offices with messages
from the managers to their brokers,
instructing the latter to buy and sell
as points are developed during the
discussions inside. This is nothing
but flight of the imagination upon
the part of penny-a-liner. The writer
has been constant attendant-on
the outside-at all of these meetings
for the past two years, and during that
time has not seen dozen messages
sent out, and does not remember Of
having seen a messenger boy on the
premises. More or less messages are
always sent off to the high executive
officials, keeping them informed of
developments, but the chief clerks in
the pool rooms are usually intrusted
with these.-[Chicago Times.